Tánaiste Publishes Competition and Mergers Review Group Report "Many of the Report’s Recommendations Make Eminent Sense" – Tánaiste "Competition Key to Ensuring Continued Economic Success" - Harney "Diversity of Choice Benefits Consumers" – Tánaiste "Competition Authority will get Resources to do its Job" - Tánaiste

The Tánaiste and Minister for Enterprise, Trade and Employment, Ms Mary Harney, TD, today (Thursday, 4th May 2000) published the Report of the Competition and Mergers Review Group.

The Group, which was chaired by Mr Michael Collins SC and which submitted its Report to the Tánaiste on 23 March last, has made some 40 recommendations on a variety of aspects of Competition and Mergers legislation, the enforcement of competition law and the administration of mergers law.

The Report recommends that the Groceries Order should be repealed and that any new regulation or legislation in regard to the grocery trade should not include a ban on below cost selling.

The Group has also recommended changes to mergers legislation to broaden the factors to be taken into account by the Minister in assessing the permissibility of mergers or takeovers in the media sector.

Announcing the publication of the Report, the Tánaiste said: "I believe that competition is the key to the continuing success of the Irish economy. Competition ensures that no one group in any particular sector can abuse a position of dominance. Consumers are afforded a greater choice and stand to benefit hugely from having the right to exercise a preference," said the Tánaiste.

Guaranteeing competition is now one of the key economic tools available to the Government in controlling inflationary pressures," she continued.

Commenting on the Report itself, the Tánaiste added "This is a comprehensive and detailed analysis of the operation and application of competition and mergers legislation. The Report has taken more than 3 years to compile and I do not propose to react in any detail until I have had the opportunity to fully and carefully consider the recommendations contained in it."

"Many of the recommendations make eminent sense. For example, the Report recommends amending legislation so as to grant immunity from suit to persons who, in good faith, make complaints or furnish information to the Competition Authority in relation to possible breaches of competition law. I would certainly be positively disposed towards such change," the Tánaiste continued.

The Report recommends certain changes to mergers legislation in so far as it relates to the media sector. The changes recommended would broaden the definition of control to include control by means other than the simple acquisition of shares. The Report also recommends extending the number of factors to be taken into account in determining which takeovers or mergers should be allowed to proceed. The new factors would include the strength and competitiveness of the indigenous newspaper industry, the plurality of ownership, the plurality of titles, the diversity of views in Irish society, the maintenance of cultural diversity and the position in the media market generally of any of the enterprises involved in the proposed merger or takeover.

"Certainly, these too are recommendation which require careful consideration. In general, I favour greater diversity of choice as I believe that consumers are the ultimate beneficiaries of this." The Tánaiste said.

"In relation to the recommendation that the Groceries Order be repealed, I am anxious to ensure that Irish consumers receive the benefits of competition throughout the country and I want to see this achieved in a way that will see those benefits sustained over time. I will be considering whether there is sufficient competition in the market and what measures would prevent any one player (or group of players acting in concert) achieving a dominant position that would leave consumers or suppliers open to exploitation. Other factors which I will be concerned with in reaching a decision on this matter will include the need to ensure that suppliers, and in particular small companies and new entrants, have fair access to a range of retail outlets, to ensure that the benefits of innovation and choice are as widely available to consumers as possible and to ensure that people have reasonable access to grocery outlets throughout the country." the Tánaiste said.

The Tánaiste continued "The enforcement of competition law is a significant and crucial element of competition policy and this Report makes a number of important recommendations in that regard. It recommends that the Director of Competition Enforcement shall be an officer of, and shall be appointed by, the Competition Authority but shall not be a member of the Authority. The purpose of this is to enhance the perception and the reality of the Director’s independence. This is a recommendation to which I will be giving serious consideration."

"While I have made no decisions in regard to the Report’s recommendations, I am firmly committed to ensuring that the Competition Authority has adequate resources to do its job. Steps have already been taken to fill vacancies that have recently arisen and a detailed examination is underway to establish the appropriate resources for the Authority. In addition, I will be meeting within the next week with the new Chairman of the Authority to hear his views on this and other issues. At the end of the day, whatever resources are required will be provided," the Tánaiste concluded.